ESG for retail investors

ESG investment has become mainstream over the last couple of years for institutions..

by Servaas Houben

Servaas Houben is Manager Actuarial at ERGO INSURANCE (Belgium) and Board Member & President Society Committee CFA Belgium

Sustainability reports have grown in detail and have extended besides qualitative goals and ambitions, into quantitative reports showing measurable progress on KPIs. Despite the increase in interest into ESG matters in the public domain by consumers reflected in climate protests and concerns, this has not yet translated in consumers becoming active EGS investors themselves: retail ESG investment in 2020 was lagging 1 with a share of 25% compared to the 75% institutional investment, despite retail investors owning 52% of global assets as per 2021.2 As the share of retail investments in total assets under management is expected to increase to 61% by 2030, this provides a clear opportunity for individual investors to increase their ESG awareness and interest in sustainable assets.

Read the article here.

 

Disclaimer:

This article represents the opinion of the author, and not necessarily the opinion of the AAE.

This article was published in The European Actuary No. 37 – March 2024

The impacts of rising inflation and interest rates volatility on Swiss pension funds liabilities

In an ever-changing pension world, pragmatic actuarial creativity will continue to be required…

article by Aurélie Furet

Aurélie Furet is an actuary at CPEG (Caisse de prévoyance de l’Etat de Genève).

The Swiss pension system is based on 3 pillars. The 2nd pillar, based on capitalization, relates to occupational benefits. It covers the risks of retirement, disability, and death. At the end of 2022, it represents 1.353 pension funds (-35% in 10  years), with 4.6 million active insured members (+18% in 10 years) and assets of 1.066 billion (+58% in 10 years).

 

Read the article here.

 

Disclaimer:

This column represents the opinion of the author, and not necessarily the opinion of the AAE.

This article was published in The European Actuary No. 37 – March 2024

3-year strategic plan: the AAE rises to the challenge

THE AAE RISES TO THE CHALLENGE

by Giampaolo Crenca

Giampaolo Crenca is Chairperson for the Actuarial Association of Europe

With a sense of continuity that takes into account all the work that has been done in recent years, the new Board of the Actuarial Association of Europe (AAE) is looking to the future and implementing a very important 3-year strategic plan. This plan builds on a significant goal which I presented in my maiden speech as Chairperson in Cologne last October: ‘to develop the actuarial profession from all points of view, from a global perspective’

 

Read the article here.

 

This article was published in The European Actuary No. 37 – March 2024

The Italian Actuarial Congress: a step forward towards the global actuary

The global actuary project is proceeding well and actuaries are ready to take this direction in future

article by Giampaolo Crenca

Giampaolo Crenca is President ISOA, Past President Italian Actuarial Council, Chairperson AAE, member of the ECA Steering Committee.

The XIV Italian Actuarial Congress was held in Milan from 15 to 17 November 2023. The full title of the event embodies its ambitious contents and goals, and communicates the fact that they are both current and forward-looking in nature: ‘The global actuary for a sustainable world: tradition, innovation and emerging risks’.

Read more here.

 

Disclaimer:

This article represents the opinion of the author, and not necessarily the opinion of the AAE.

This article was published in The European Actuary No. 37 – March 2024

 Our woman in the Hague

How to arrange the best possible pension for everyone

interview with Agnes Joseph

Agnes Joseph is an actuary and MP in the Netherlands.

On 22 November 2023 the Netherlands held elections. The results reshaped the political landscape. One of the big winners of the election was the new political party Nieuw Sociaal Contract (NSC) who gained 20 out of 150 seats in the House of Representatives. It became the fourth largest party in the country and it is an important partner in the negotiations to form a new government. The party leader, Pieter Omtzigt, is a quantitative economist, while the number 8 on the list, Agnes Joseph, is an actuary. We asked her about her ambitions in politics, now that she has entered the House of Representatives with her actuarial background.

 

Read the article here.

 

Disclaimer:

This interview represents the opinion of the interviewee, and not necessarily the opinion of the AAE.

This article was published in The European Actuary No. 37 – March 2024

Current challenges of the German social security system

Current challenges

column by Natalia Löfflad

Natalia Löfflad is a board member of two IORPs (Allianz Versorgungskasse VVaG and Allianz Pensionsverein e.V). She is an actuary and fully qualified member of the German Association of Actuaries (DAV), where she recently took over the lead of the Social Security working group.

In the Social Security Working Group of the German Association of Actuaries (DAV), dedicated DAV members examine legislative projects from a professional and actuarial perspective. The following remarks are based on the presentation by Katja Jucht and Andreas Holle from the Social Security Working Group as part of the Continuous Professional Development series ‘DAV vor Ort’ (DAV on site).

 

Read the column here.

 

Disclaimer:

This article represents the opinion of the author, and not necessarily the opinion of the AAE.

This article was published in The European Actuary No. 37 – March 2024

S is for social – all about social sustainability in insurance

Jérôme Crugnola-Humbert

Chairperson AAE – Sustainability and Climate-Related Risks Working Group

 

The potential of insurance as a positive social factor has long been understood: some Ancient Romans maintained subscription payments to burial societies – rather like life insurance premiums – which would cover their funeral costs after death. Earlier still, Ancient Greek maritime law decreed that in the event of cargo being jettisoned from a ship to lighten the load, the cost of the loss should be shared between those whose cargo reached its destination as well as the affected parties. Society has undeniably been shaped by the capacity to collectively share and manage risks which could not be borne by an individual.

Back in the modern day, ESG is becoming a familiar concept in insurance and elsewhere, and it is increasingly embedded in policymaking too. However, so far there has been a tendency for the ‘S’ (Social) to play only a supporting role compared with the ‘E’ (Environmental, and in particular climate change). Although this is reasonable to some extent, given that the consequences of climate change are highly relevant to insurers, there is now a need for the insurance industry to sharpen its original focus on the S, and to be as ambitious in this area as it should be on environmental issues.

Continue reading “S is for social – all about social sustainability in insurance”

Pension Tracking Systems: more than a service to citizens

Pension Tracking Systems

article by Jeroen van den Bosch

Jeroen van den Bosch is Chairman of the taskforce of the Pension Tracking Systems at the AAE.

Pension Tracking Systems (PTSs) remain under the attention of the European Commission, EIOPA and governments of several countries even after 10 years. What actually is a PTS, why is there undiminished interest in PTSs, and what can actuaries do for the development of PTSs?

Read the article here.

 

Disclaimer:

This article represents the opinion of the author, and not necessarily the opinion of the AAE.

This article was published in The European Actuary No. 37 – March 2024

Planning ahead are our EU pensions and social security systems fit for the future?

Planning ahead..

interview with Andriana Sukova

Andriana Sukova is Acting Director-General, DG for Employment, Social Affairs and Inclusion at the European Commission.

EU employment and social policies bring practical benefits to citizens, but also have to tackle challenges linked to globalisation, the ageing of Europe’s population and changing social realities. Andriana Sukova, Acting Director-General, DG for Employment, Social Affairs and Inclusion at the European Commission, spoke to The European Actuary’s Jennifer Baker about the view ahead.

Read the interview here.

 

Disclaimer:

This interview represents the opinion of the interviewee, and not necessarily the opinion of the AAE.

This article was published in The European Actuary No. 37 – March 2024

New edition of The European Actuary – Social Security

Issue 37, March 2024 of The European Actuary has been published.

 

The theme of this issue is: Social Security

Featured Articles:

  • Planning ahead are our EU pensions and social security systems fit for the future?| with Andriana Sukova
  • Pension tracking systems: more than a service to citizens | by Jeroen van den Bosch
  • Current challenges of the German social security system | by Natalia Löfflad
  • Our woman in the Hague | with Agnes Joseph
  • The Italian Actuarial Congress: a step forward towards the global actuary | by Giampaolo Crenca
  • 3-year strategic plan: the AAE rises to the challenge| by Giampaolo Crenca
  • The impacts of rising inflation and interest rates volatility on Swiss pension funds liabilities | by Aurélie Furet
  • ESG for retail investors | by Servaas Houben
  • CONVENTION A |  by Daniel Jung
  • The importance of Thought Leadership | by Malcolm Kemp

Please visit the webpage of The European Actuary on the AAE website for prior issues or further details.